The artist has given the full amount of his twenty-five thousand pound award prize money to the Music Venues Trust, which operates to preserve the Britain's small live music spots.
He was awarded the award on 16 October as his latest record the album was declared the best record of the previous year.
Fender has chosen to donate the funds to the trust, in recognition of the vital role local spots played in his beginning days.
"As an artist wouldn't be doing what I am doing today if it weren't for all the gigs I played around the North East, and beyond, when I was beginning," remarked Sam Fender. "These spaces are legendary, but they are in difficulty."
Since the start of 2023, at least 150 of these locations have ceased operations – about 16 percent of the whole industry in the UK.
Over the past year, well-known musicians such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its attempts to help venues survive, by including a minor surcharge to their ticket prices, which goes to help smaller concert halls.
Fender also participated, collecting over £100k on his 2024 arena tour to assist numerous local spots across Britain.
The money assisted venues that were dealing with potential shutdown due to challenges arising from floods, fire incidents and personal losses, as well as permit problems, conflicts and noise complaints.
Additional spaces received financial assistance in modernizing infrastructure and technical equipment that directly benefitted musicians and concertgoers.
"The concept that money from shows in big venues helps the independent spots, where it all starts for performers like me, is just common sense," the star has said.
He is not the first artist to contribute his Mercury Prize prize money to good deeds.
In the band earned the prize in the mid-90s for their release Different Class, vocalist the singer stated that the band would give their cash to the non-profit War Child.
During 2002, artist the artist shared her prize among several charities, including the children's charity and a Sickle Cell organization.
"And I contributed a thousand pounds to Highgate Newtown, to their classes, because I trained in gymnastics when I was a child and they needed updated gear," Ms Dynamite told the media.
Previously, the band donated their funds to the local youth club that developed their group, as well as other independent music bodies.
And the 1994 recipients M People contributed their winnings to a multiple sclerosis charity after a acquaintance was diagnosed the illness.
"Winning was quite enough," stated vocalist Heather Small. "The cash was the bonus but we didn't need the extra, because we had the cake. So our victory impacted the lives of others."
In the past week, the Music Venues Trust revealed it had protected several local spots in the South East, by placing them under community ownership.
The Joiners in the city and the other in Bristol were bought under the Own Our Venues program, which is backed by a national body and music fans who purchase "shares" in the venues.